Salary and Dividend - How to calculate tax | AccountingWEB

Salary and Dividend - How to calculate tax

 Hi All

I am confused as to how I could calculate the tax if someone is paid both salaries and tax. Can someone suggest a calculator or template I could use. I have  3 scenarios,

1. Pay £10k salary, and £30k dividend

2. Pay £15k Salary, £45k dividend

3. Pay just £30k dividend - no Salaries.


How can i calculate tax and NI for these scenarios?


Also can someone confirm that the director can withdraw all the profits as dividends? Basically we have a contractor who would like to start a company and draw all the profits as dividends rather than going on our payroll. it's consultancy so there are no cost for him. Is it possible?


Your help would be much appreciated. Thanks 


There are 4 comments. Login or register to view them.


Tosie |

First things first

Anonymous |

Thank you

vdeepan3 |

Tax Planners

ksalter |
ksalter's picture